三井住友トラスト・ホールディングス（8309） – 2021-2022 Sustainability Report- 2

Strengthening LeadershipDeveloping Next-Generation LeadersIn cooperation with Hitotsubashi University’s Graduate School, SuMi TRUST Bank offers GL training for Global Leaders (for deputy general managers, associate general managers) to nurture the next generation of top management and SL train-ing for Strategic Leaders (for section managers, operational chiefs) to nurture the next generation of leaders. Candidates learn the values, general knowledge (liberal arts), and MBA elements they need for management, and through sessions and courses, they complete the program by presenting a pro-posal to senior executives. Furthermore, we carry out various training sessions to develop leaders among our female em-ployees and provide them a path to management.After these training sessions, employees receive opportuni-ties to put their learnings at the sessions into practice in a vari-ety of settings through their assigned duties and replacement.In addition, through exploring the history of the Mitsui and Sumitomo corporate groups and communication with outside lecturers and foreign students, the program aims to reaffirm the SuMi TRUST Group’s origins and business spirit, broaden horizons, instill global awareness, and enable par-ticipants to build networks within and outside the Company.Strategy for Global Human ResourcesTo foster a global mindset and produce a continuous stream of human resources who can succeed in business sectors both in Japan and overseas, the SuMi TRUST Group has in-creased the number of employees sent from Japan to work overseas to 215 as of March 31, 2021, up from 115 as of March 31, 2012. We have also increased the number of em-ployees with foreign citizenship working in Japan to 69 as of March 31, 2021, up from 22 as of March 31, 2012. Employees hired overseas are eligible for transfers to other overseas locations and their training at the Head Office is also consid-ered to be undertaken.In addition, we provide screened training for next-generation top management candidates with no overseas experience to develop their management perspectives and language skills at global level.Management Under the New Normal EnvironmentIn addition to training to develop next-generation leaders to aggressively pursue strategic business development, SuMi TRUST Bank conducts rank-based training to ensure that each generation receives training at the appropriate time. Currently, section managers and team leaders undergo team building to help them defend the administration of their branches and departments while responding to demands from management as well as training to gain management awareness. The training is designed and conducted in part-nership with an external educational institution based on their integrated leadership training curriculum (the 7 Habits of Highly Effective People). Furthermore, we conducted a new training program in fiscal 2021 for all managerial posi-tions at the section manager level and above to help them understand the new management styles that have emerged under the new normal environment. This training provid-ed insights on communicating with subordinates, instilling organizational ideals, and managing the workforce in a re-mote work environment. Human resources development re-quires not only classroom learning but also practical training through hands-on experience. Therefore, in order to help these managers acquire practical knowledge and skills, we not only encourage learning through group discussions at the training site but also support post-training assignments and other out-of-class activities. We actively promote human resource development through recurrent education that Flow of Rank-Based TrainingTraining for new executive officersTraining of management line at branches and departmentsTraining for new deputy general managers(in charge of HR)Training for autonomy in domain of responsibilityGlobal & leadership II training(prior to appointment as manager)Training for new responsibilitiesCareer ownership training (recurrent education)Training for new branch and department managersTraining for new section and team managersGlobal & leadership I training(prior to appointment as supervisor)Training for new employees and follow-up trainingData Concerning Training for Human Resources Development (FY2020)Total number of trainees*1Number of selected and nominated traineesPercentage of employees that participated in training*2Total training hoursTraining costsNo. of training days10,0599131.8%¥340 million170*3935.4 days(Calculated at 7 hours per day)*1 Total number of trainees in business-specific training, rank-based training organized by the Human Resources Department, and SuMi TRUST University*2 Percentage of employees that participated in business-specific training, rank-based training organized by the Human Resources Department, and SuMi TRUST University, calculated as: Number of trainees (excluding overlaps) / total number of employees × 100.*3 For fiscal 2020, total training days have decreased YoY as a result of the preparation time taken for shifting to online training, as well as an increase in trainings held on the same day due to the shift to online training.109Principles of GovernancePlanetPeopleProsperitySumitomo Mitsui Trust Holdings, Inc.Sustainability Report 2021/2022Human Capitallooks ahead to an age of 100-year life and, from fiscal 2019, we started inviting external instructors (former managers, university professors, etc.) to provide training for newly ap-pointed executive officers and managing executive officers.These training programs are held online as a general rule, and are designed to promote the growth of human resourc-es based on a flexible management approach that supports a variety of work styles.Reinforcement of Digital Human ResourcesSuMi TRUST Bank is working to strengthen the expertise and expand the workforce of its digital human resources capa-ble of providing value to clients and employees by way of a technology-driven business transformation and is therefore offering employees numerous ways and opportunities to un-dertake learning. It organizes lectures by external experts and well-known figures in the digital field and has also launched a Digital Academy to communicate information online about topics of focus. Furthermore, the Bank has introduced a university lecture participation program through which em-ployees can study leading-edge technologies like AI and blockchain, as well as analysis techniques leveraging proba-bility and statistics. We are also taking on the challenge of creating innovation through strengthening our digital human resources by, for example, introducing joint training programs with IT-related companies to examine business models.Fair Evaluations and TreatmentIn order to fairly evaluate and treat diverse human resourc-es, it is necessary for all employees to share and practice the goals of the evaluation system, and in practice, objec-tivity is essential. For this reason, roughly every three years, SuMi TRUST Bank sends members of the Human Resources Department to each branch and department to interview employees. Additionally, as a means of obtaining a multi-faceted view of our personnel, we have introduced an anon-ymous survey for subordinates and others to rate the day-to-day management actions of line managers in the branch management ranks (general managers, deputy general managers, section managers, etc.). Further, we also promote management action reform and encourage the cultivation of a climate of bi-directional dialogue.Purpose of Personnel Evaluation System• To maximize our performance as an organization by aligning the vectors of the Company and individual employees in the same direction• To ensure goal setting and issue identification, daily communication, and face-to-face meetings to review performance, etc. lead to 110changes in behavior and capacity developmentto appropriate jobs and treated justly• To fairly evaluate the various achievements of employees and the diverse capabilities they have demonstrated to ensure they are assigned Personnel Evaluation Systems with Individual Employee ParticipationSuMi TRUST Bank’s personnel evaluation system enables in-dividual employees to participate in the evaluation process. At the beginning of each business term, SuMi TRUST Bank’s employees consult with their supervisors and determine specific business execution tasks. After the end of the term, supervisors meet face to face with employees and review their attainment level versus issues identified and the pro-cess they went through to deliver results, provide them with assessments they find convincing, and afford them capabil-ity evaluations across the process they followed to achieve results. Those capabilities demonstrated and evaluated in-clude the state of their ethics and compliance and their de-gree of involvement in developing human resources.Starting in fiscal 2019, Sumi TRUST Bank changed its per-formance evaluation cycle from six months to one year to make it easier to tackle medium- and long-term issues as well as short-term initiatives. Although the evaluation peri-od is longer, we still intend to meet at least once a quarter for timely sharing and resolution of day-to-day issues and to conduct interim process checks.performance of the entire Group and individual’s perfor-mance and achievement in the bonus amount with a view to realizing “incentives for building up earnings for the entire Group as well as for contributing to business unit, branch, or department the individual belongs to” and “fair and highly transparent system management through clarification of the process of reflecting business performance.”Through appropriate evaluation of personnel and the payment of bonuses reflecting performance, the Group has developed an environment that enables capable personnel to fully exercise their capabilities.To further support our employees’ accumulation of fi-nancial assets, we sponsor a SuMi TRUST Group employ-ee stock ownership plan that regularly purchases shares of SuMi TRUST Holdings.Employees to be evaluated13,290 employees (as of end of September 2021)Business performance indicators used to determine performance-linked bonusesAchievement ratio of the consolidated net business profit before credit costsAchievement ratio of the consolidated net incomeBonus System Reflecting Business PerformanceFrom the perspective of encouraging individual employees to fully exercise their capabilities, SuMi TRUST Bank has introduced a system to appropriately reflect the business Evaluation method used to measure individuals’ performanceDecided through relative distribution among employees belong-ing to the same business unit based on the results of performance evaluation specified under the personnel evaluation systemSumitomo Mitsui Trust Holdings, Inc.Sustainability Report 2021/2022Upholding Positive Workplace EnvironmentsDeclaration on Work Style ReformThe SuMi TRUST Group hereby declares it a top commitment to offer a workplace where the diversity and creativity of its employees are more fully utilized to add value to the organization and where employees can have pride and be highly motivated in fulfilling their missions. The Group as a whole will work towards the following goals.1. Achieving diverse work styles and work-life balance2. Supporting health improvement through measures such as boosting health awareness and appropriately managing work hours3. Providing opportunities for all employees to grow while participating actively with motivationThrough the enthusiastic work of each individual employee, we will continue to be a corporate group that contributes to the benefit of clients and is useful to society.Optimizingwork stylesA culture thatfosters motivationand job satisfactionHealthmanagementTo “improve the workplace environment” the other side of our action to raise the level of the Group’s workforce (see page 102), in May 2017, we created the Work Style Reform Headquarters, led by the presidents of SuMi Trust Holdings and SuMi TRUST Bank, and instituted the “Declaration on Work Style Reform” to demonstrate the commitment from the top of the Group.At SuMi TRUST Bank, the initiatives implemented in ac-cordance with this declaration are helping to generally improve the scores for the questions regarding workplace environment and work-life balance in the annual employee awareness survey.Support for the International Labour PrinciplesThe SuMi TRUST Group supports the ILO Declaration on the Fundamental Principles and Rights at Work as a signatory to the UN Global Compact.We also make sure that employees can read about our guidelines concerning labor standards by posting them on the Company’s intranet. This same information is also shared with our overseas offices.Specific Initiatives• Set and enforce a nine-hour interval rule (the minimum num-ber of hours between the end of a work day and the start of the next work day)• Ascertain working hours of all Group employees, including those at affiliated companies, and take thorough measures to prevent overwork• Discuss overtime work status and the management status of systems to promote employee health for the entire Group four times per year at meetings of the Board of Directors. Utilize the opinions of attendees, including those of external directors and external auditors, in drawing up and executing proposals• Upload to our internal intranet successful management ex-amples of efficient work operation execution• Shift to business casual attire year-round• Data is processed and returned with the use of RPAOptimizing Work StylesImproving the Workplace EnvironmentThe Group is conducting a broad range of initiatives to improve the workplace environment. Specifically, we have been working on reducing the level of overtime work by car-rying out thorough work-efficiency and time-management measures. We aim to achieve a goal of cutting clerical work at branches by 70% in around five years by implementing business process reforms and promoting branch strategies. We are also steadily improving efficiency in headquarters operations, for example by automating routine tasks.The manpower created from these changes will be shifted to the on-site sales force, IT operations, and other specialized areas in order to enhance client support and improve services.Furthermore, the Group has been working to reduce overall work hours by encouraging employees to take paid leaves and setting months for leaving work early and weeks for leaving work on time.Status of Paid Holiday Use among SuMi TRUST BankEmployees (FY2020 Results)Average number of days of paid holiday use15.4daysAverage paid holiday usage rate57%Status of Overtime Hours among SuMi TRUST BankEmployees (FY2020 Results)Average overtime hours per month(outside of mandatory work hours)Ratio of career-course employees exceeding 60 hours of overtime per month(outside of mandatory work hours)19.1hours0%Health-Related Data of SuMi TRUST Bank Employees (FY 2020 Results)Ratio of employees that have received a de-tailed health examinationRatio of employees that smokeRatio of employees that took a stress checkRatio of employees with high levels of stress69.4%11.1%93.6%9.0%111Principles of GovernancePlanetPeopleProsperitySumitomo Mitsui Trust Holdings, Inc.Sustainability Report 2021/2022Human CapitalInitiatives to Realize Work-Life BalanceThe Group actively strives to create working environments that enable employees to work at ease and maintain a good balance between work and home lives. As one plank in this effort, the Group is a member of the “Iku-boss Corporate Alliance” established by specified non-profit organization Fathering Japan, which develops businesses to support fathers and promote work-life balance for men. Through the activities of the alliance, we will again spread within the Group a message that “realizing diverse work styles and work-life balance” for employees is crucial for sustainable growth of the Group, and promote the development and reform of awareness among senior executives.As for childbirth and childcare, SuMi TRUST Bank has created an environment where employees can raise their children with peace of mind by implementing a variety of measures. For example, in addition to offering childcare leave until children reach the age of two, SuMi TRUST Bank promotes childcare leave for male employees, and has es-tablished a nursing care leave system where employees with two or more children requiring care can apply for up to 10 days of leave per year. Furthermore, employees who are pregnant or who live with and raise children of or below the third grade of elementary school are eligible for a system of shorter working hours and an exemption from working over-time or at night. As of the end of March 2021, 393 employees had used this system to take childcare leave. We are also de-veloping a childcare handbook so as to provide information to pregnant employees and their managers mainly regard-ing how the leave system works and key points to be mind-ful of. In addition, we have a website that can be accessed by employees on childcare leave and an email newsletter that provides useful information on child-rearing, as well as company information. We also run seminars led by exter-nal lecturers for employees returning to work, and in addi-tion to creating networks between female colleagues that Usage Status of Flexible Employment System(FY2020 Results)Number of employees using shorter working hours system for childcare or nursing careNumber of employees using staggered work starts, overtime work exemptions for childcare or nursing careNumber of employees telecommuting522209385200150100500114114848463636969112Number of Employees Taking Childcare LeaveNumber of Employees Taking Nursing Care Leave400368368358358368368356356325325393393177177180180End ofMarch2016End ofMarch2017End ofMarch2018End ofMarch2019End ofMarch2020End ofMarch2021End ofMarch2016End ofMarch2017End ofMarch2018End ofMarch2019End ofMarch2020End ofMarch2021SuMi TRUST Bank’s System for Childbirth and Childcare (as of End of March 2020)PregnancyBefore childbirthAfter childbirthUnder 1 year of ageUntil the child’s second birthdayTo under elementary school ageUntil third grade of elementary school3002001000ItemStaggered working hoursSecure time for hospital visits, ease the burden of commuting, etc.Prenatal and postnatal leave (8 weeks before and after childbirth/paid)Maternity and childcare leave (first week is paid leave)Childcare time (1 hour a day or two 30 minute periods a day/paid)Exemption from overtime workExemption from late-night workShortened workday system (shorten working hours by no more than 2 hours a day)Nursing care leaveSumitomo Mitsui Trust Holdings, Inc.Sustainability Report 2021/2022might harbor the same concerns about balancing work with child-rearing and supporting their smooth transition back to the workplace, we also hold training for section managers with subordinates that face time constraints due to childcare responsibilities by using case studies to examine organiza-tional management methods.We are developing a nursing care handbook containing basic information about nursing care and we regularly hold seminars on this topic. We have in place a nursing care leave system that offers employees up to 10 days off per year (if there are two or more family members requiring care), a leave-of-absence system for nursing care that can be taken for up to 12 months, and a system of shorter working hours that can be utilized over a maximum of three years (for every family member requiring care). In addition, starting in 2021, we relaxed the requirements for taking accumulated paid leave, allowing employees to use it for their own injuries and illnesses, family care and nursing, fertility treatment, etc., thereby expanding the safety net for themselves and their families. We have also set up a nursing care consultation service where employees can freely consult with external ex-perts on everything from minor questions to concerns about nursing care and balancing work and family life.Furthermore, with regard to fertility treatment, we have conducted awareness-raising training for all employees via e-learning in order to promote employees’ knowledge and understanding of fertility treatment, and have added fertility treatment to the list of acceptable reasons for taking accu-mulated paid leave as mentioned above, and have also es-tablished an in-house fertility treatment consultation service.Supporting Work-Life Balance forEmployees Undergoing Cancer TreatmentIn fiscal 2019 we introduced flexible working arrangements to support the balance between cancer treatment and work, including a leave program that can be taken in hourly units. SuMi TRUST Bank has also joined the “Corporate Action to Combat Cancer” initiative promoted by the Ministry of Health, Labour and Welfare.Promotion of Flexible Working StylesFrom fiscal 2018, SuMi TRUST Bank started offering its em-ployees the option of teleworking in order to boost produc-tivity and support a work-life balance. From fiscal 2019 it started trialing a satellite office-based working style from the viewpoint of more effectively utilizing branches and reduc-ing the burden of commuting. Since fiscal 2020, the number of users and branches in this setup have increased. The Bank is also encouraging staggered working hours in an effort to develop an environment whereby employees can flexibly choose when and where they want to work.These initiatives are actively being utilized as an effective means of staggering office attendance amid the COVID-19 pandemic.Also from fiscal 2019, the SuMi TRUST Bank adopted a business casual working attire for the whole 12 months of the year. This initiative heightens the autonomy of employ-ees who sometimes need to choose for themselves suitable clothing to wear depending on what kind of work they are doing or which clients they are meeting with. It will also further the development of comfortable workplaces because employees can more easily adapt to colder or hotter days.Employee Health ManagementWith regards to “assistance to advance health by raising health awareness in the workplace and properly manag-ing working hours,” we seek to promote both the physical and mental health of all Group employees. In addition to promoting the aforementioned optimized work styles, the Group has appointed medical and hygiene supervisors (hy-giene promoters) at each of our business locations to pro-vide detailed health management guidance, and through e-learning courses, we seek to raise employee awareness about the importance of health. We also conduct activities such as training to raise the awareness of line managers about the importance of managing their own mental and physical health and that of their subordinates. In addition, we provide all employees with opportunities to use exter-nal medical and healthcare services so that they can further improve their health outside of work. In recognition of these initiatives, the Group has been selected in METI’s White 500 as an organization having outstanding health and productiv-ity management for four years in a row since 2018.Moreover, we are endeavoring to respond swiftly and appropriately to the spread of the COVID-19 pandemic by setting up a coronavirus hotline in order to deal with any psychological anxiety felt by employees.• To bolster employee health management, we thoroughly in-form employees of their duty to manage their own health, and we encourage independent and voluntary health management.• We ensure a flexible approach is in place for employees work-ing long hours by encouraging them to take half-day paid leave or come to work later in the day.• We have commenced a program, in coordination with branches and departments, to make sure that those employees who have not taken a necessary health checkup, re-examination, or medi-cal treatment will take the one they have missed.• We put into place a framework for ascertaining the health status of each employee through daily communication within branch-es, meetings with Human Resources Department personnel, and the filing of job condition declaration (once a year), in addi-tion to regular health checkups.• We offer influenza vaccinations (at the main office buildings and some branches) and issue warnings aimed at preventing the spread of the seasonal flu, the norovirus, and other conta-gious viruses.• We encourage employees to participate in radio gymnastics at the start of the work day.• We report the status of overtime work hours and the manage-ment status of health promotion systems to meetings of the Board of Directors four times per year, and utilize a broad range of opinions, including those from external directors and exter-nal corporate auditors, in drawing up and executing measures.• Ban smoking in all buildings• Established a COVID-19 consultation service and carried out COVID-19 vaccination for the entire Group, including all em-ployees of Group companies and their family members who want to be vaccinated.Specific Initiatives113Principles of GovernancePlanetPeopleProsperitySumitomo Mitsui Trust Holdings, Inc.Sustainability Report 2021/2022Human CapitalPhysical HealthAll employees are required to undergo an annual health ex-amination (100% of employees underwent health examina-tion in fiscal 2020), and the Human Resources Department encourages employees needing medical attention to un-dergo health examinations individually (69.4% of employees underwent detailed health examinations in fiscal 2020). We also support health examinations such as complete medical checkups for employees’ family members through health in-surance associations.To help employees maintain good health in the work-place, we removed smoking areas from our offices and pro-hibited smoking in all buildings in 2018 as a way to prevent secondhand smoking (11.1% of employees were smokers in fiscal 2020).In order to prevent the spread of COVID-19, we organized a workplace vaccination program for our employees, as well as employees of other Group companies and their families from July to September 2021.Mental HealthOnce a year we have all employees undergo a stress check (93.6% of employees underwent a stress check and 9.0% of employees were determined to have high stress in fis-cal 2020). In addition to providing feedback individually, an occupational physician provides guidance so that line managers can provide the right care. We also have in place consultation systems that are easy for employees to use—for example, our in-house health promotion centers set up mental counselling times and the health insurance associa-tion provides free health counselling over the phone. When conducting the annual stress check, group analysis results are provided to the employees’ union so that improvements in the workplace environment can be discussed.A Motivating, Fulfilling Work CultureTo “provide all employees with motivating opportunities to succeed and grow,” we endeavor to build a work culture that encourages employees to challenge themselves and learn, and stimulate mutual communication. Managers are expect-ed to meet with their employees at least quarterly. These meetings allow the manager to get to know the employees’ day-to-day concerns and challenges, help them grow and contribute in a timely manner, and think through their career plans together.As previously mentioned, we have recommended em-ployees enlist their colleagues beyond each branch or de-partment to create such learning opportunities as seminars and learning circles, and hosted lectures inviting outside lecturers on a regular basis. In addition, SuMi TRUST Bank encourages employees to independently and voluntarily form their own careers by switching the relocation type from region-specific type to nationwide type, and through inter-nal job posting system by which employees can apply for transfers to different duties or business units as they desire.At the same time, in order to connect the positive moti-vation of Group employees to new solutions in the form of new products and innovations, we are promoting employ-ees’ future-oriented activities for the creation of new busi-nesses and operations, which will in turn boost employees’ motivation even more.Dialogue with EmployeesTo ensure that both the Company and employees are head-ing in the same direction and in an effort to encourage employee understanding of the Group’s business model and value creation story, we publish an easy-to-understand Employee Integrated Report.In addition, to make sure our desired corporate culture continues to spread, good mutual communication between officers and employees, as well as between co-workers, is essential. SuMi TRUST Bank takes advantage of events where employees congregate, such as rank-based training, and provides opportunities where the President and other officers talk about topics including management policy and their leadership with a question-and-answer session.“The Trust Bank discussion” is also held at the workplace to foster the awareness of fiduciary spirit and improve teamwork.Through open discussion on specific topics between fel-low employees, regardless of their position or team, SuMi TRUST Bank puts into practice the concept of “shaping workplaces to be highly motivating.”In addition, as a communication tool between employees and management, we conduct an employee awareness sur-vey for all employees.114Business briefing held prior to open recruitmentNext-generation leaders discuss the Group’s mission during trainingSumitomo Mitsui Trust Holdings, Inc.Sustainability Report 2021/2022Labor/Management RelationsA sound and stable labor-management relationship is an indispensable foundation for a company to achieve sustain-able growth.SuMi TRUST Bank recognizes the freedom of association and respects the right to organize and the rights of collec-tive bargaining. It also guarantees employees the right to openly engage in communication with management. As of end-September 2021, the employees’ union has 11,692 members, which accounts for 84.08% of all employees. The new inclusion of associates to the employees’ union in July 2018 greatly boosted the percentage of unionization among all employees compared to March 2017, when only 8,537 employees were members of the union. The Bank regular-ly holds management consultation meetings attended by the management team that reports directly to the president alongside the representative of the employees’ union, as well as branch and department consultation meetings at-tended by labor and management representatives for each branch office. During these meetings, discussions focus on working conditions for union members and how workplace environments can be maintained. In this way, the opinions of employees are reflected into management.At other Group companies as well, there are initiatives to ensure smooth business operation and maintain and improve the workplace environment through dialogue between the company and the union or representatives of employees.Encouraging Senior Employees to ThriveSuMi TRUST Bank has in place a program to continuously re-employ retirees who meet certain criteria until they reach the age of 65 (the Elder Partner Program), but from April 2021 it will extend the mandatory retirement age to 65 so that se-nior employees can remain at the Company for longer.Also, employees that demonstrate a high level of exper-tise are certified as Fellows and a framework that reflects their skills in the employment benefits they receive has been introduced.Promoting Well-beingIn April 2021, we established officers in charge of well-being, and are strengthening internal and external promotion ac-tivities while participating in industry-government-academia collaboration sessions at the “Well-being Initiative” hosted by Nikkei Inc.The slogan of the SuMi TRUST Group’s well-being promo-tion activities is “creating a virtuous cycle of happiness for employees, clients and society.”By improving the well-being of our employees, we aim to boost the value of the Group’s human capital and achieve our “Purpose” of “creating new value with the power of trusts and let prosperous future for our clients and society bloom” through the creation of positive impacts. Improving the well-being of our clients and society will give our employ-ees, who are members of society, a sense of fulfillment, joy, and achievement, which in turn will improve their well-being, accelerating the virtuous cycle of happiness.We have defined “employee well-being,” which is the foundation of value creation, as a state in which employees are healthy both physically and mentally, empathize with our “Purpose,” and pursue happiness in their work by utilizing their own values and strengths under good interpersonal relationships that respect diversity. In accordance to this definition, we are working to develop measures to achieve employee well-being.For example, in an effort to promote the sharing of values between SuMi TRUST Bank and its employees, we are work-ing to foster a corporate culture that creates happiness, start-ing with the “Online Information Briefing for All Employees” by the officer in charge of well-being. This is followed by the “Branch Manager’s Cram School and Dojo (theme: Positive Stories for Improving Wellbeing)” at each workplace and “1-on-1 coaching training” for all senior executives.In addition to the employee awareness survey that we have been conducting for some time, we have introduced the Pulse Survey, which enables us to check conditions and identify signs in a timely manner, and we are focusing on im-provement activities at the workplace level to create a cheer-ful and comfortable workplace. Furthermore, we are strength-ening our initiatives to have employees themselves promote well-being activities, such as recruiting well-being promoters from all branch offices for the in-house side job program that we started in October.115Well-beingA Virtuous Cycle of HappinessWell-being of employeesBoosting the value of human capital (employees)Subjective condition of employeesCreation of Positive ImpactsWell-being of clients and societyContribution to clients and society, value creationCreating a virtuous cycle based on well-beingPrinciples of GovernancePlanetPeopleProsperitySumitomo Mitsui Trust Holdings, Inc.Sustainability Report 2021/2022Human CapitalA Handbook for Overseas Employees,Domestic Employees Posted OverseasSuMi TRUST Bank has prepared a guide, the “Overseas Application Handbook,” on all the social and cultural cus-tom risks that overseas employees and domestic employ-ees sent overseas ought to be aware of. In drafting the handbook, we referenced reports by Business for Social Responsibility(BSR), a nonprofit that originated in the United States that works with companies on sustainability issues, and research materials released by the Industrial Federation for Human Rights, Tokyo.116Understanding the customs and taboos emanating from the culture, religion, national identity, and unique attributes of each country enables our employees to obtain a deep-er understanding of the behavior and sentiments of people in other countries and thus builds a foundation for smooth communication and mutual trust. The handbook covers a wide array of bases from summary data on each country such as Transparency International’s* Corruption Perception Index (country rankings), manners for various scenarios such as when doing business or sharing a meal, widely shared sensibilities and basic knowledge as well as taboos, differ-ences between Japanese culture, customs, and lifestyles and those of the relevant country to the human rights of wom-en in each country and customs and rules arising from reli-gion. With our Global Business Planning and Coordination Department and Human Resources Departments at the fore, we publicize the handbook to encourage employees to look through it as a reference before going overseas.* Transparency International is an international NGO dedicated to fighting corruption, especially corruptions among public-sector authorities. The handbook’s country rank-ing is based on Transparency International’s Corruption Perception Index that covers 175 countries and territories.Distribution of Harassment Prevention HandbookGiven the number of cases reported to the Group’s consulta-tion line and the greater focus on harassment issues in society, we have distributed a harassment prevention handbook to all Group employees in order to prevent harassment from oc-curring and to stop situations from worsening further, and so all Group employees can be sure to take appropriate action as members of the organization. In addition, every year SuMi TRUST Bank runs a harassment prevention training course through its e-learning platform for all employees to complete.Through proper understanding, we aim to eliminate ha-rassment, foster a culture of mutual respect, and create a comfortable and rewarding workplace environment.System to Respond to Complaints Related toLabor Practices, etc.In view of the need for appropriate workforce manage-ment, SuMi TRUST Bank has established, within the Human Resources Department, the Personnel Consultation Desk (LGBTQ Consultation Desk), at which all employees (includ-ing course employees, professional employees, associate employees, part-time workers, and temporary employees) can receive consultation without going through the regular reporting line when problems related to personnel and la-bor affairs management, such as unfair or unjust labor af-fairs management practices or workplace harassment, occur. As a safety net to guard against labor affairs problems, the Personnel Consultation Desk strives to appropriately han-dle consultation cases—also received anonymously—while promptly cooperating with relevant persons.With respect to associate employees, in addition to per-sonnel management at workplaces, SuMi TRUST Bank has started “personnel affairs support services,” including rota-tion interviews with employees, through an affiliated compa-ny (Sumitomo Mitsui Trust Business Service).SuMi TRUST Bank strives to prevent labor affairs problems by trying to grasp the circumstances of individual employees and collecting opinions and views which maybe difficult to express in the workplace (see page 120).Number of Consultations Concerning Labor Practices, etc.at SuMi TRUST BankFY2016FY2017FY2018FY2019FY20207865766899Results of the Employee Satisfaction SurveySuMi TRUST Bank conducts an “attitude survey” of all em-ployees in order to objectively identify employees’ percep-tion of the dissemination of measures taken by the company, the personnel system and its operation, and the workplace environment and engagement. The results of the survey are returned to management and frontline employees for use in improvement activities.FY2015FY2016FY2017FY2019FY2020Vitality level61.560.962.159.160.4Satisfaction level61.160.859.860.463.2Vitality level: Indicator of the level of expectations for the future, forward-looking thinking, willingness to contribute to the organization, work motivation.Satisfaction level: Indicator of how much satisfaction employees get from the contents of their job duties, the working environment and personal relationships.Sumitomo Mitsui Trust Holdings, Inc.Sustainability Report 2021/2022Employee Breakdown (Sumitomo Mitsui Trust Bank)Number of employees13,527(5,950 men) (7,577 women)13,740(5,988 men) (7,752 women)As of end of March 2020As of end of March 2021Hong KongJapanChinaKoreaSingaporeIndonesiaUKUSASydneyAverage annual salary* Guaranteed minimum wage by region as prescribed by the MHLWNumber of temporary staffNumber of part-timersNumber of employees using the Elder Partner ProgramNumber of work-related accidents (annual)6312,73713114246237204344649455125117Average age41.4(Male: 43.5) (Female: 39.6)Average continuous yearsof employment14.1(Male: 16.3) (Female: 11.8)41.6(Male: 43.6) (Female: 39.6)14.0(Male: 16.2) (Female: 11.9)7,349 thousand yen7,064 thousand yenNumber of disabled persons employed301(Disabled person employment ratio: 2.28%)303(Disabled person employment ratio: 2.32%)Number of employee turnover (annual)285(128 men) (157 women)220(109 men) (111 women)6812,9361301403624121334534246799Principles of GovernancePlanetPeopleProsperitySumitomo Mitsui Trust Holdings, Inc.Sustainability Report 2021/2022Human CapitalDiverse Human Resources with Expertise That Support the “Power of Trusts”Qualification/roleNumber of employeesFinancial Consultant/Trust Consultant1st grade Certified Skilled Professional of Financial PlanningGerontology TestBank Gerontologist Certification Exam (Financial Services Level 3, Senior Correspondent Banking Practice Course)Real Estate Appraiser (total of real estate appraisers and assistant real estate appraisers)Real Estate Transaction Specialist ExamARES Certified MasterFirst-Class ArchitectSecurities AnalystCFA (Chartered Financial Analyst)118Pension ActuaryIn-house LawyerCertified Administrative Procedures Legal SpecialistCertified Public AccountantCertified Public Accountant (US)Licensed Tax AccountantCertified Internal Auditor (CIA)Labor and Social Security AttorneySystem AuditorProject ManagerAdvanced System AdministratorInformation Systems Security AdministratorIT StrategistOverseas Graduate School graduates (Master’s/PhD)(All figures are SuMi TRUST Bank’s actual results as of the end of September 2021) (Note: *1 is as of the end of March 2021; *2 is for the entire SuMi TRUST Group)271*16739603,502175*26,26835727813184531551016105641121012171144Sumitomo Mitsui Trust Holdings, Inc.Sustainability Report 2021/2022Respecting Human Rights1. Human Rights ManagementEstablishment of Human Rights PolicyUnder the “Basic Policy on the Social Responsibility of Sumitomo Mitsui Trust Group (Sustainability Policy),” the Group upholds respect for individuals’ human rights and diverse values and rejects unjustifiable acts of discrimina-tion in all its activities. Moreover, in December 2013, to en-sure the execution of the aforementioned basic policy, the Group formulated its human rights policy, which serves as a standard for acts and judgments concerning human rights, and on November 1, 2016, we amended this policy to add text prohibiting discrimination against LGBTQ and disabled people. Based on this policy, the Group respects the human rights of all stakeholders with whom we are involved when conducting routine business activities and providing prod-ucts and services.Human Rights PolicyAt the Group, based on the “Basic Policy on the Social Responsibility of Sumitomo Mitsui Trust Group (Sustainability Policy),” we strive to foster a corporate culture and workplace environment that respects the basic human rights of clients and all stake-holders, always act with a strong sense of ethics and social conscience in all aspects of our corporate activities, and achieve sustainable development as a corporate group that is trusted by society.1. Respect International StandardsWe respect international standards on human rights, such as The Universal Declaration of Human Rights and corporate codes of conduct based on the United Nations Global Compact.2. Prohibit DiscriminationWe reject, in all our corporate activities, discrimination and infringement of human rights based on race, nationality, gen-der, sexual orientation, gender identify, origin, social status, beliefs, religion, disability, physical characteristics, and the like.3. Foster a Corporate Culture that Respects Human RightsWe regard every kind of human rights issue as one facing us and encourage our employees to think from the other person’s point of view so as to foster a corporate culture that respects human rights.4. Establish a Pleasant Workplace EnvironmentWe establish a pleasant workplace environment by encourag-ing all executives and employees to treat each other as busi-ness partners and build equal relationships that allow a free exchange of opinions.We acknowledge that such behavior as sexual harassment and power harassment impair human dignity; therefore, we do not allow such behavior.5. Ensure Fair RecruitmentWe implement strict and fair screening in the recruitment of employees and others, solely based on individual capability and suitability.6. Implement Human Rights Education Training119With the aim of resolving all kinds of actual or potential issues related to human rights and encouraging all executives and employees to develop a deep appreciation of human rights that appropriately reflects relevant and accurate facts and information, we work on a wide range of human rights educa-tion activities, including one addressing discrimination against the Dowa caste, a specifically Japanese social minority, through every kind of opportunity, mainly annual workplace-based human rights education training.The above-mentioned policy also applies to our overseas network, and the Group gathers information on cases where the corporate activ-ities of our domestic and overseas suppliers and contractors (supply chain), and companies that we invest in or lend to, negatively impact human rights. In cases where relevant laws, standards, and policies are violated, necessary measures are taken as appropriate.Basic PhilosophyThe Group’s human rights management is based on the“Guiding Principles for Business and Human Rights,” which was adopted by the United Nations Human Rights Council in June 2011.Human Rights Management System Based on the Guiding Principles for Business and Human RightsCommitmentEstablishment of the Human Rights PolicyImplementation of human rights due diligence*1Once a year, the Human Rights Due Diligence Self-check List*2 is distributed to all branches, departments, and affiliates both at home and abroad as a tool to check the status of respect for human rights at each unit.Access to redressThe Personnel Consultation Desk (LBGTQ consultation desk) in the Human Resources Department serves as a contact point.*1 Human rights due diligence refers to a series of initiatives to identify actual or potential impact on human rights, resulting from the activities of the Group or related outside parties, to develop measures for the prevention or mitigation of such impacts, and to continuously verify and disclose the effectiveness of such measures.*2 A check list serves to verify the progress in each department concerned with the Human Rights Management System, such as the status of implementation of human rights due dili-gence, compliance with the Human Rights Policy, and occurrence of human rights violations.Principles of GovernancePlanetPeopleProsperitySumitomo Mitsui Trust Holdings, Inc.Sustainability Report 2021/2022120Respecting Human RightsOutline of the Human Rights Management SystemThe Human Rights Due Diligence Liaison Committee, chaired by the head of the Sustainability Management Department, was established in December 2013 as a joint organization by SuMi TRUST Holdings and SuMi TRUST Bank. The roles of each relevant department are shown below.Human Rights Due Diligence Liaison Committee• Chaired by the head of the Sustainability Management Department, the Liaison Committee investigates how hu-man rights are being addressed at all Group companies, including overseas entities, identifies issues that need to be addressed, and discusses and implements measures for improvement.• This committee conducts annual investigations into the status of addressing human rights by using the Human Rights Due Diligence Self-check List.• In light of the current external environment surrounding human rights, we are currently considering a review of the system.Sustainability Management DepartmentThis department formulates objectives and plans for the de-velopment and reinforcement of the framework to address human rights issues within the Group, based on discussions at the Human Rights Due Diligence Liaison Committee.Human Resources Department and Human Rights Education CommitteeThese organizations engage in the planning and imple-mentation of measures including human rights education training, based on discussions at the Human Rights Due Diligence Liaison Committee. Specifically, the Human Rights Education Committee, chaired by the executive in charge of the Human Resources Department, plays the central role in implementing various training programs and conducting education activities concerning human rights issues.Organizational Structure of the Human Rights Education CommitteeChairmanExecutive in charge of the Human Resources DepartmentVice ChairmanGeneral Manager of the Human Resources DepartmentMembersGeneral Managers and employees responsible for personnel affairs at branches and departmentsSecretariatHuman Resources DepartmentPersonnel Consultation Desk (LGBTQ Consultation Desk)While responding to various claims and inquiries concerning human rights, the Consultation Desk works together with the relevant departments and units to swiftly take necessary steps in cases where it becomes evident human rights have been infringed. The Consultation Desk also offers anonymous con-sultation in cases where privacy needs to be protected.If requested by the employee bringing the case, the Personnel Consultation Desk may approach the workplace, conduct interviews with parties involved and other rele-vant third parties, and recognize the fact. Furthermore, the Personnel Consultation Desk may take action to transfer parties involved so as to improve the working environment of the consulter, or may discipline the perpetrator in accor-dance with company rules.Number of Inquiries Received at the Personnel Consultation Desk in Fiscal 2020Number of inquiriesNumber of unre-solved inquiriesTotalHarassment-relatedPower harassmentSexual harassmentHuman resources related (including employment related)Organizational managementHuman relations (including health-related, etc.)General inquiries (about systems, etc.)7330273615715138621310All Branches, Departments, and Affiliates at Home and AbroadEach unit verifies the status of compliance with Human Rights Policy, based on the Human Rights Due Diligence Self-check List.Main Items on the Human Rights Due Diligence Self-check List Consideration for Human Rights Issues in Management System to Promote Human Rights Awareness (system ad-ministration, response when human rights issues occur, etc.) Human Rights Education (implementation of human rights awareness training, etc.) Response to Human Rights Issues by CategoryUnderstanding and awareness of the Dowa Issue Whether recruitment and hiring are implemented fairly Companies and society (ending discriminatory expressions, understanding of universal design, etc.) Human rights in the workplace (harassment prevention, consideration for the elderly, consideration for the dis-abled, understanding for those with contagious diseases such as HIV, etc., understanding for LGBTQ community) Balancing work and family (consideration for employment diversity in personnel system, consideration for maiden name use, understanding for childbirth & childrearing sup-port and for nursing case leave, etc.) Pursuit of job satisfaction (fairness in personnel evaluation and treatment, equality of opportunity, respect for the indi-vidual, safety and crisis management that take into account disabled and pregnant workers, etc.) Awareness activities about various human rights issues (discrimination on the basis of nationality, discrimination against the elderly, child labor; discrimination against lep-ers, those identifying as LGBTQ, and ex-convicts, etc.) Consideration for human rights issues in loans & invest-ments and supply chain (racial discrimination, child labor, human health, environmental destruction that affects peo-ple’s livelihoods, weapons and armament manufacture con-trary to humanitarian concerns, fairness in hiring activities, consideration for employee human rights, etc.) Activities of those responsible for human rights awareness in Human Resources DepartmentSumitomo Mitsui Trust Holdings, Inc.Sustainability Report 2021/2022basic human rights of all stakeholders are respected, unjusti-fied acts of discrimination are rejected, and individual rights and diverse values are respected.Human Rights Management Based on PDCA CycleThrough the PDCA cycle, the Group strives to improve the quality of its human rights management so as to cultivate a workplace environment and corporate culture where the Human Rights Management System Based on PDCA CycleHuman Rights Due Diligence(Plan)Sustainability Management DepartmentHuman Resources DepartmentCoordination with NGOs and NPOs(Check & Action)Human Rights DueDiligence Liaison CommitteeHuman Rights Education CommitteeAll branches, departments andaffiliates both at home and abroad(Plan)(Do)(Do)Personnel Consultation Desk(LBGTQ consultation desk) (Access to redress)2. Education Concerning Respect for Human RightsThe Human Rights Education Committee informs all em-ployees via email once a month about its human rights awareness tool, which highlights positive case examples of respecting human rights. In addition, various training ses-sions concerning human rights issues are held at all Group companies and branches and departments. Training aimed at raising awareness about human rights in the Group was conducted through e-learning at SuMi TRUST Bank in fiscal 2020, with a total of 25,438 participants across all Group companies. Furthermore, a total of 1,492 participants at-tended a total of 10 hours of rank-based training at SuMi TRUST Bank.If further education is deemed necessary for some issues as a result of human rights due diligence, these topics are brought up for discussion as themes of the annual workplace-based human rights training.1213. Protecting Various Human RightsInitiatives for Diversity & InclusionThe Group disseminates information to employees to share the ideals and objectives of and steadily promote “diversity and inclusion” for the entire Group.Prevention of Sexual Harassment and Power HarassmentSexual harassment and power harassment are actions that infringe on the human rights and personal dignity of indi-viduals and are prohibited. In terms of power harassment, Initiatives to Address Dowa and Foreign Residents IssuesThe Group regards tackling discrimination against the Dowa caste as a particularly important theme in the promotion of human rights education. The origins of our Group’s efforts to be more active in human rights education goes back to the Dowa issue. The Group has continued to draw on insights from external bodies, such as the Industrial Federation for Human Rights, Tokyo, and at the same time, we have worked to completely eliminate prejudiced or discriminatory views against the Dowa caste through various training programs and education activities, including new employee training.With regard to foreign residents issues, we discuss the residency management system, which was launched on July 9, 2012. Rank-based training was provided on giving consid-eration to the human rights of foreign residents, including the handling of personal authentication documents and re-specting privacy, envisioning such situations as identifying oneself at service counters.Structure for Advice/Complaints andResponse Relating to HarassmentPerson seeking advice(victim, perpetrator, or third party)(A)(A)Harassment PreventionCommittee representative(B)Personnel Department(Personnel Consultation Desk)(C)(C)Problem solvedProblem solved(A) Advice is sought and complaints are registered via the Harassment Prevention Committee representative in each branch or department, or directly by the Personnel Consultation Desk within the Human Resources Department.(B) The Harassment Prevention Committee representative will, where necessary, consult the Personnel Consultation Desk within the Human Resources Department and request advice or measures to address the case.(C) The Harassment Prevention Committee representative or the Personnel Consultation Desk within the Human Resources Department will, once they understand the details of the complaint being registered by the complainant, interview the party accused of harassment, as well as other related parties as necessary, in order to accurately under-stand the situation, and attempt to solve the issue via advice or other measures.Principles of GovernancePlanetPeopleProsperitySumitomo Mitsui Trust Holdings, Inc.Sustainability Report 2021/2022Respecting Human Rightswe are working toward the elimination of all forms of this problem. This problem is based on advantageous positions in the workplace. It is not limited to harassment by superiors of subordinates, but also includes harassment between se-nior employees and junior employees, colleagues, and even harassment by subordinates of their superiors. In the event harassment does occur, advice is sought and complaints are registered via the Harassment Prevention Committee repre-sentative in each branch and department, or directly by the Personnel Consultation Desk within the Human Resources Department. When advice is sought by a victim, a person in charge conducts an overall investigation that includes inter-views with relevant parties on the specific behavior indicated, the relationship of the people involved, the response of the victim, etc. Either stringent corrective measures or punish-ment—or both—are implemented against the perpetrators.Furthermore, we discuss on the prevention of harassment in workplace-based human rights training, new employee training, and a range of rank-based training in our ongoing efforts to raise awareness.In addition, in step with the consultation cases coming to the Consultation Desk and recent social trends, in fiscal 2018 we created the Harassment Prevention Handbook, which is distributed to all employees to further raise awareness.The Consultation Desk also offers anonymous consulta-tion in cases where privacy needs to be protected.Addressing LGBTQ IssuesAs already mentioned, when we amended our Human Rights Policy in November 2016, we added a clause prohib-iting the discrimination against any person who identifies as LGBTQ. To establish a workplace environment in which sexual minorities can simply be themselves (including 122people who consider themselves to be part of the LGBTQ commu-nity), SuMi TRUST Bank continues to work on educating its workforce through the establishment of a consultation hotline, reviewing its employee benefit schemes, and running training sessions. We have also announced, inter-nally and externally, our stance on supporting the LGBTQ community. For example, same-sex partners can now take out a SuMi TRUST Bank mortgage loan because the Bank recognizes same-sex partners as spouses, and the SuMi TRUST Group has thrown its support behind the Tokyo Rainbow Pride festival. In recognition of these initiatives re-garding sexual minorities and the LGBTQ community, wwP (work with Pride), a voluntary organization that supports the promotion and establishment of diversity management regarding LGBTQ issues, has continuously awarded its Gold rating, the highest rating in the Pride Index*1, to SuMi TRUST Bank since fiscal 2017. In fiscal 2021, SuMi TRUST Holdings*2 and Nikko Asset Management received Gold ratings. In addition, SuMi TRUST Bank was selected for the Rainbow Certification, which was newly established in fiscal 2021 to recognize collective impact initiatives.In November 2021, we announced our support for Business for Marriage Equality and the Business Support for LGBT Equality in Japan, a campaign to enact LGBT equality laws in Japan, with the aim of developing into a sustainable and strong organization by creating a comfortable work en-vironment where each individual can be who they are.*1 URL: https://workwithpride.jp/pride-i/*2 Awarded jointly with SuMi TRUST Bank, Sumitomo Mitsui Trust Asset Management, Sumitomo Mitsui Trust Business Service, Sumitomo Mitsui Trust Card, and Sumitomo Mitsui Trust Club4. Factoring Human Rights Issues into Lending and Investment DecisionsEngagement Activities Related to Human Rights IssuesAs a responsible institutional investor, Sumitomo Mitsui Trust Asset Management (SMTAM) actively works with in-vestee companies on a global scale and encourages them to address issues through engagement and the exercise of voting rights.In particular, human rights are priority issues for com-panies expanding their business globally, and we have positioned human rights as one of the 12 ESG themes to be addressed in our engagement activities. In addition to verifying whether or not there is child labor or forced mi-grant labor in the supply chain, we have been engaging in dialogue with our investee companies to encourage them to improve the verification functions of their boards of directors and strengthen the commitment of top management. We have also been conducting engagement activities with com-panies that manufacture inhumane weapons (cluster bombs, anti-personnel mines, biological and chemical weapons) for many years to encourage them to withdraw from the busi-ness. The top management of Sumitomo Mitsui Trust Asset Management also got involved, and as a result,